EU moving towards fiscal union with pandemic recovery plan: German FinMin

FILE PHOTO: German Finance Minister Olaf Scholz attends a joint news conference with Justice Minister Christine Lambrecht in Berlin, Germany, October 7, 2020. REUTERS/Hannibal Hanschke

BERLIN (Reuters) - The European Union is taking a step towards a fiscal union with its plans to recover from the coronavirus pandemic, which involve the European Commission borrowing in financial markets, German Finance Minister Olaf Scholz said on Monday.

“We are moving towards fiscal union, a major step forward in the financial capacity and sovereignty of the EU,” Scholz told an interparliamentary conference on stability, economic coordination and governance in the European Union.

To support the bloc’s economy, the EU has announced a 750 billion euro ($885 billion) recovery fund.

“Markets have confidence in European policies and in the development of European economies,” said Scholz, whose country currently holds the presidency of the 27-member bloc. “We should carry on with this course,” he added.

Reporting by Paul Carrel; Editing by Maria Sheahan